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# Microeconomics Study Set 28

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## Quiz 32 : The Gains From International Trade

A country that engages in no foreign trade is said to be in a situation of
Free
Multiple Choice

D

The existence of any ʺgains from tradeʺ relies on
Free
Multiple Choice

C

One region is said to have an absolute advantage over another region in the production of good X when
Free
Multiple Choice

C

The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland. FIGURE 32-5 -Refer to Figure 32-5.If Paperland engages in international trade and the world price is PA,the amount of newsprint produced by Paperland will be
Multiple Choice
The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland. FIGURE 32-5 -Refer to Figure 32-5.If Paperland engages in international trade and the world price is PA,the amount of newsprint ________ will be ________.
Multiple Choice
Trade,whether between individuals or nations,generally promotes
Multiple Choice
Suppose Canada could produce all goods and services more cheaply than all other countries.In that case,
Multiple Choice
According to what economists call the ʺlaw of one price,ʺ
Multiple Choice
The hypothesis that the price of some given internationally traded product in one country will be equal to the price of the same product in some other country is known as
Multiple Choice
The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland. FIGURE 32-5 -Refer to Figure 32-5.If Paperland does not engage in international trade,the equilibrium quantity of newsprint produced domestically will be
Multiple Choice
The increases in a nationʹs output and consumption that result from specialization and trade are called
Multiple Choice
Suppose Spain is currently producing 90 units of wine and 10 units of cheese,but to produce 10 more units of cheese it must sacrifice 30 units of wine.Further,suppose that Portugal produces 45 units of wine and 45 units of cheese,but to produce 10 more units of cheese it must sacrifice only 10 units of wine.It can be concluded that
Multiple Choice
The ʺlaw of one priceʺ states that the price of
Multiple Choice
Consider the trade of a product between two regions.If it is very inexpensive to move the product from one regional market to another,then the
Multiple Choice
The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland. FIGURE 32-5 -Refer to Figure 32-5.If Paperland engages in international trade and the world price is PC,the amount of newsprint produced by Paperland will be
Multiple Choice
Multiple Choice
Since 1950,the worldʹs real GDP has increased by seven times and the volume of world trade has increased by roughly
Multiple Choice
The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland. FIGURE 32-5 -Refer to Figure 32-5.If Paperland engages in international trade and the world price is PC,the amount of newsprint ________ will be ________.
Multiple Choice
In 2014 the value of goods exported from Canada was approximately $________ while the value of goods imported was approximately$________. Each of these flows represents ________% of Canadaʹs GDP.
Multiple Choice
According to the Heckscher-Ohlin theory,national comparative advantages exist because of
Multiple Choice